This is a status report provided by the New Jersey State Bar Association on recently passed and pending legislation, regulations, gubernatorial nominations and/or appointments of interest to lawyers, as well as the involvement of the NJSBA as amicus in appellate court matters. To learn more, visit njsba.com.
Governor Conditionally Vetoes Community Wealth Preservation Program Bill
New Jersey Gov. Phil Murphy conditionally vetoed S1427 (Gill)/A793 (Timberlake), which would create the Community Wealth Preservation Program to foster home ownership among the community. The NJSBA shared its concerns with Assemblywoman Britnee N. Timberlake that the bill may have a negative impact on homeownership due to the constraints imposed by the bill during the sheriff’s sale process.
“We appreciate the aim of this bill to create equity in the purchase process to preserve communities,” said the NJSBA in a letter to the sponsors. “However, the bill creates an artificial bidding process that does not appear to achieve the aim intended by the sponsors.”
Among those concerns the NJSBA raised was that the upset price be 50% of the actual upset price for residential foreclosures for next of kin and nonprofits.
The “upset price” is defined as the minimum amount for which the property can be sold at a sheriff’s sale. The upset price is usually the amount that is still owed on the mortgage (the “actual upset price”).
This mandate would strip lenders of the ability to recover 50% of the balance of any loan and may result in an unconstitutional taking. In addition, the NJSBA pointed out that limiting the upset price at 50% of the judgment would create an artificial bidding process for non-kin or nonprofits who are bidding because the lender will always prevail up to the actual upset price of the property.
The governor’s conditional veto highlighted the concerns raised by the NJSBA and other stakeholders and recommends removing the cap on the upset price and requiring that the upset price be set at least two weeks prior to the foreclosure sale with notice on the sheriff’s office website. The governor made additional recommended changes to expand and incentivize the creation of nonprofits eligible to bid on these properties.
“I applaud the bill sponsors’ dedication to seeking creative solutions to keep homeowners in their homes and communities and to create more opportunities for affordable owner-occupied housing,” Murphy said.
According to the bill sponsors, foreclosures disproportionately impact urban areas and residents of color. The bill was aimed to allow families whose homes are in foreclosure to be able to keep ownership of the homes within their families or allow nonprofits to purchase the homes in order to preserve ownership among those in the community.
The NJSBA continues to monitor the bill’s progress in the Legislature, which has returned from the summer break.
NJSBA Urges Passage of Veterans Bill to Ease Parking Privilege Applications
The Assembly Military and Veterans Affairs Committee passed out of committee A2438 (Wirths)/S660 (Oroho), which would relax the application requirements for 100% disabled veterans to renew parking privileges through the Motor Vehicle Commission. The NJSBA supports the measure to make the process more efficient, especially since the pandemic has made MVC accessibility more challenging.
“Permanently disabled veterans will not be required to submit proof of disability on renewal applications, which will ultimately allow them to easily maintain the benefits that they have rightfully earned,” the NJSBA said to committee members.
The NJSBA continues to monitor this bill as it moves through the Legislature.